Chery Eyes Potential Partnerships With US Automakers
The Chinese automaker is exploring collaboration to enter North American markets while navigating high tariffs.
Updated on Oct. 21, 2026 in Auto Parts
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Chinese car manufacturer Chery is considering partnerships with US automotive companies as it works to expand its international presence. The company is currently developing vehicles that avoid reliance on Chinese-made hardware and software.
Why it matters
By decoupling its vehicle architecture from Chinese components, the company aims to circumvent protectionist trade barriers and gain entry into the North American automotive sector.
Chery currently faces US tariff rates exceeding 100 percent for its vehicles. The company, which produced its first vehicle in 1999, is now pivoting its technical design to exclude Chinese software and hardware.
The players
Chery
Chery is a Chinese automaker based in Wuhu that produces the Omoda and Jaecoo vehicle brands.
The details
Chery, which produces the Omoda and Jaecoo brands, is investigating various partnership models to overcome significant regulatory hurdles. The automaker intends to launch its brand in Canada by early 2027.
Timeline
Chery produced its first car in 1999.
The announcement regarding potential US partnerships occurred on October 21, 2026.
The planned brand launch in Canada is scheduled for early 2027.
Roadmap
Chery's move to partner with American firms highlights the difficult transition for Chinese automakers seeking to bypass the US Section 301 tariffs on Chinese goods. This strategy signals a broader shift toward localized manufacturing to maintain competitiveness in global markets.
For consumers, this move could eventually lead to the availability of new vehicle brands that meet regional safety and technology standards. However, the success of these partnerships will dictate whether these products remain cost-competitive after accounting for supply chain changes.
The takeaway
Navigating international trade policy requires automakers to decouple their technological supply chains from their home markets. Companies that successfully adapt their hardware and software standards are better positioned to penetrate restrictive international consumer markets.
Further reading
Learn more about the global industry shift at Auto Parts.
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Should the US allow Chinese automakers to partner with domestic companies to enter the market?
